What are your options?

Debt Elimination Companies are mostly scams!

Today you need to be very careful when dealing with debt elimination companies. most if not all of those companies are “scams”. There are many companies out there claiming they can eliminate your debt legally by some sort of method without filing a bankruptcy. Some companies state that they will write letters contesting the validity of the debt,  and magically creditors will just drop the claim. Do not fall for these lies…

 If you know that you legitimately owe a debt then you need to look for a legitimate debt solution. There is no truth to legally eliminating debt 100 percent unless you were to file chapter 7 Bankruptcy. Never deal with a company that wants up-front fees and is asking you to engage in an unlawful act like credit fraud. Disputing debt that you actually know you owe is committing fraud.

If your debt is legit and you are not disputing the fact that you owe it, then they have the right to collect it. That said, there are legitimate ways to reduce the debt legally, therefore getting you out of debt sooner. Here are the only “legitimate” methods of getting out of debt.

1. Debt Consolidation Loans
2. Bankruptcy
3. Credit Counseling
4. Debt Settlements

Each one of these methods has its advantages and disadvantages. To learn more about these programs, you can find them in the category section of this blog. Please note that you can get yourself out of debt by following some of our strategies that we teach. DO NOT pay high fees for debt reduction programs when you can do it yourself if coached…

I am a Mom of three teenagers.  You can only imagine how many pairs of jeans, and the astonishing number of hoodies we have bulging out of our closets.  Sure, when they get tired of them you can list them on Ebay and auction them off but you have to go through the painstaking process of taking a picture of every item, describe  every item(in detail), and list things one at a time.  Hopefully the item sells, and then you have to ship each, individual item.  Sounds exhausting, doesn’t it! 

Every busy Mom should know the word “Consignment” and be very familiar with the process.  Grab your phone book and look up consignment shops in your area.  Make a list and give each one of them a call to check out their individual policies, and find one that suits you.  I opened a consignment account last year after spending countless hours listing things on Ebay.  It cost me $5.00 to open the account and I was able to bring in 30 items every 30 days. I receive 50% of the price each item sells for. Most consigners have a calendar and allow certain things to be dropped off during certain seasons. 

What a relief it was packing a few bags and just dropping them off at the shop.  Give it a few weeks and check on your account.  I have made about $200.00 in just a few short months, and I have VERY little time into it!  No more photos, no more listing, and no more trips with bags and boxes to the Post Office. 

Another fun idea would be to purpose the new found cash.  If you vacation every year, add it to your vacation fund.  This could mean tickets to an amusement park!  If you need to pay down some debt, what a great infusion this could be.  Maybe in August you could use the cash towards school clothes for the current year.  Whatever the purpose may be, we could always use the extra cash without the extra hassle!

Every Sunday most, if not all, of us are blessed with coupons in our Sunday paper.  I love spending Sunday afternoons comparing the store sale flyers with the new coupons. 

Not long ago, I found a really neat trick to getting products we use everyday free, or better yet, getting paid to buy them.  For example, this week I purchased contact lens solution for my oldest son.  The price of the solution was $7.99.  At CVS drugstore they have what they call Extra Bucks Rewards. 

When I purchased the contact solution, I had the cashier scan my ―ExtraCare Card, and I received a coupon for $7.99 towards my next purchase.  I can only use the coupon at CVS, but next week there will be more items on sale that I can use my discount coupon towards. 

I have made several purchases where I have had a coupon for the item listed for sale, and received the full purchase price as a discount coupon.  This is how you are able to get paid for making the purchase. 

For example:

Say Suave Body Wash is listed for $1.99 with a reward coupon for $1.99 with purchase, and you have a coupon for $1.00 off Suave Body Wash.  You just got paid $1.00 for making that purchase, and you received the product! 

There are many different reward programs with many different retail stores.  I find drugstores the best.  So, don’t forget to get the Sunday paper this weekend and see what you can get free!!

A few years ago I was invited to become a member of a web site called e-rewards.com.  Not long after I became a member, I realized how easy and fun it was to earn rewards for taking surveys.  I have been able to receive free magazine subscriptions, and I have given many away to friends and family.  My husband loves business magazines and the prices per issue have really gone through the roof.  He also enjoys the Food and Wine magazines and they can run about $5.00 per issue. 

E-rewards is an invitation only site, but there are many other sites where you can earn rewards for your opinions.  A great online survey website is myopinionnow.com.  It is free to join, and as you are asked to participate in surveys, you earn points towards rewards and cash.  When you become a member be sure to do the first survey right away so they can learn about what interests you.  When new surveys that pertain to your interests become available, you will get an email alerting you to take the survey.  The site lets you build points and redeem them for things such as free music downloads, and magazine subscriptions. 

Make sure you always check to be sure that you are dealing with a reputable website.  Check them out with the Better Business Bureau, and NEVER give these companies your banking information, or Social Security number.  A legitimate company will not ask you for this information. 

Happy Earning!

Bankruptcy as a possible option:

Bankruptcy- There are two forms of personal bankruptcy, Chapter 7 & Chapter 13. Chapter 7 bankruptcy (Total liquidation) is where you walk away from your debt legally if you qualify. Under this plan you may lose property and other assets and should counsel with an attorney to make sure this is right for you.

The other form of bankruptcy is what’s known as the “wage earner plan” or Chapter 13, whereas the bankruptcy trustee is responsible for collecting monthly payments to repay the creditors included in the plan. This is usually done through wage garnishment. The amount paid back to the creditors is decided through the bankruptcy court.

Personally I feel you should try to avoid bankruptcy if at all possible. Bankruptcy should be reserved for the last option when no other method will work. When it comes to eliminating credit card debt, the solution I like the best is the debt settlement solution. The reason is it’s a win-win alternative solution to bankruptcy for you and the creditor. Again just beware of the companies that offer this service, some charge very high fees and not always do they get the job done.

Save money with Restaurant Dot Com…

Wouldn’t it be amazing if you could eat dinner at a nice restaurant for less than half the price??  My family and I were in the process of planning our vacation, but because of the lagging economy, we limited budget.  I figured to cut some cost we could plan meals, and eat in a little more often.  But who really wants to cook on their vacation?  So I did a little research.   

I came across a website that seemed too good to be true.  The website is Restaurant DOT com. (There is a link on the right side bar) Here is a brief description of how it works.  You visit the website and, at no cost, become a member.  Next you type in the zip code or city that you live in, or will be visiting.  All the restaurants in that vicinity that participate in the program will show up.  At that time you will be able to purchase gift certificates.  For example, say you were visiting Burbank, CA.  You could purchase a $25.00 gift certificate for $10.00 at Burbank Bar and Grill.  That’s a $15.00 savings!!  You will also receive periodic emails giving you codes that will save you even more.  I was able to purchase $25.00 gift certificates for a mere $2.00 a piece!! 

 This is real, and completely legitimate.   I have to admit that the first time I used my certificates I was a little nervous.  I made sure our server knew I had the certificate before we even placed our order, and to my delight, no questions asked!